I heard more folks talking about it. It is what is happening in Greece today and to some extend in US.
The major flaw of the US political system is the re-election in 4 years. Our leaders do not plan or care about the long term. We've more poor than the rich and each has one vote. However, after they've been elected, they have to pay back to the special interest groups (such as no gun control) that have funded their campaigns. That's why democratic system always leads to corruption and self destruction.
Politicians have to watch out for the benefits/welfare of the poor in order to buy votes. The rich will migrate to other countries with less taxes, and be rewarded for their investment and taking risks. So are the corporations moving jobs and investments overseas. We have to blame ourselves as we vote to elect our leaders.
Most of the recent protesters in Wall Street belong to the unemployed and the 40% (excluding the unemployed due to our economic mess) of the citizens who pay no Federal taxes. It is some kind of taxation without representation in reverse. They should take minimal paid jobs (that are taken by illegals today), give back their entitlements... They are taking more from the society than giving back.
Greece has been illustrated this concept thoroughly. Democratic system esp. the rich ones could lead to socialism/corruption, and socialism/corruption in turn could lead to self destruction. With the world interconnected, it could lead to global recession.
Obviously non-democratic systems could also lead to socialism, which in turn could lead to capitalism with corruption too.
Click here on "China and Political Systems".